Senate Commerce Minutes 01/31/2002 10:00 AM

77^th Legislative Session _ 2002

Committee: Senate Commerce

Thursday, January 31, 2002

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Bogue
P    McCracken
P    Sutton (Dan)
P    Volesky
E    Whiting
P    Brown (Arnold), Vice-Chair
P    Munson, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Munson

MOTION:     TO APPROVE THE MINUTES OF JANUARY 29

Moved by:    McCracken
Second by:    Sutton (Dan)
Action:    Prevailed by voice vote.

         SB 29: revise certain fees for special inspections and examination of certain weighing and measuring devices and certain standards and testing equipment.

        Previously heard in minutes of Jan 15

Proponents: Joe Hjermstad, Weights and Measures

MOTION: AMEND SB 29

On page 1, line 14 of the printed bill, overstrike " based on travel time and expense " and insert " not to exceed the actual cost of such inspection, including costs for personnel, equipment, and

mileage, ".

On page 1 , delete line 15 , and insert "individual or device owner. ~~Such fee may not exceed twenty dollars per hour, in~~ ".

On page 2 , delete line 1 , and insert " ~~addition to a fee of forty cents per mile~~ . All fees , except those for special or emergency inspection, shall be promulgated by the".

On page 2 , delete lines 10 to 12 , inclusive, and insert " Commerce and Regulation shall charge a fee not to exceed the actual cost of such inspection, including costs for personnel, equipment, and mileage. ".

On page 2 , line 23, overstrike " based on travel time and expense " and insert " not to exceed the actual cost of such inspection, including costs for personnel, equipment, and mileage, ".

On page 2 , line 24, overstrike " The fee may not " .

On page 3 , delete line 1 , and insert " ~~exceed twenty dollars per hour, in addition to a fee of forty cents per~~ ".

On page 3 , overstrike lines 2 and 3 .

Moved by:    Sutton (Dan)
Second by:    McCracken
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 29 AS AMENDED

Moved by:    Sutton (Dan)
Second by:    Brown (Arnold)
Action:    Prevailed by roll call vote.(5-0-2-0)

Voting Yes:    McCracken, Sutton (Dan), Volesky, Brown (Arnold), Munson

Excused:    Bogue, Whiting

         SB 108: require the acceptance of certain uniform life insurance request forms.

         Refer to minutes of January 24

Presented By:    Senator Sutton, Prime Sponsor

MOTION: AMEND SB 108

On the printed bill, delete everything after the enacting clause and insert:

" Section 1. That chapter 58-15 be amended by adding thereto a NEW SECTION to read as follows:

If a policyholder has made a request to cash surrender, to obtain maximum policy loans, or to make an Internal Revenue Code Section 1035 exchange under a life insurance or an annuity policy, the insurer shall forward to the policyholder or the policyholder's insurance producer, within thirty calendar days of receiving the request for the form, any required form to accomplish such transaction. If the insurer does not do so, the policyholder may utilize a uniform life insurance or annuity form for such purpose. The director shall adopt the uniform life insurance and annuity forms by rules promulgated pursuant to chapter 1-26. If the insurer has failed to submit its form to the policyholder or the policyholder's insurance producer within the time period required by this section, the insurer shall accept the uniform form as adopted by the director and may not require the use of any additional form."

Moved by:    Volesky
Second by:    Brown (Arnold)
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 108 AS AMENDED

Moved by:    Brown (Arnold)
Second by:    Volesky
Action:    Prevailed by roll call vote.(5-0-2-0)

Voting Yes:    McCracken, Sutton (Dan), Volesky, Brown (Arnold), Munson

Excused:    Bogue, Whiting

MOTION:     TO AMEND TITLE OF SB 108

On page 1, line 1 of the printed bill, after " insurance " insert "and annuity".

Moved by: Sutton (Dan)

Second by:    Brown (Arnold)
Action:    Prevailed by voice vote.

         SB 109: exempt certain insurers and intermediaries from mortgage lending licensing.

Presented By:    Dick Gregerson, American Council of Life Insurance

MOTION:     DO PASS SB 109

Moved by:    Brown (Arnold)
Second by:    Volesky
Action:    Prevailed by roll call vote.(5-0-2-0)

Voting Yes:    McCracken, Sutton (Dan), Volesky, Brown (Arnold), Munson

Excused:    Bogue, Whiting

MOTION:     PLACE SB 109 ON CONSENT CALENDAR

Moved by:    Brown (Arnold)
Second by:    McCracken
Action:    Prevailed by voice vote.

         SB 81: limit the Department of Labor's authority to recommend settlements in labor disputes.

         Gavel passed to Vice Chair Brown

Presented By:    Senator Munson, Prime Sponsor
Proponents:    Bob Stevens, SDEA (Handout A/B)
        David Bordewyk, SD Newspapers Assn
        Deb Jurgens, Self, Sioux Falls, SD
        Jean Placek, Self, Lennox, SD
        Paul Aylward, AFSCME
Opponents:    James Marsh, SD Dept of Labor
        Jim Shekleton, Bd of Regents

MOTION:     DO PASS SB 81

Moved by:    Munson
Second by:    Sutton (Dan)
Action:    Failed by roll call vote.(3-3-1-0)

Voting Yes:    Sutton (Dan), Volesky, Munson

Voting No:    Bogue, McCracken, Brown (Arnold)

Excused:    Whiting

MOTION:     WITHOUT RECOMMENDATION

Moved by:    Volesky
Second by:    Sutton (Dan)
Action:    Failed by roll call vote.(3-3-1-0)

Voting Yes:    Sutton (Dan), Volesky, Munson

Voting No:    Bogue, McCracken, Brown (Arnold)

Excused:    Whiting

MOTION:     DEFER SB 81 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Bogue
Second by:    McCracken
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 81 UNTIL TUESDAY FEBRUARY 5

Moved by:    Munson
Second by:    Volesky
Action:    Prevailed by roll call vote.(4-1-1-0)

Voting Yes:    Sutton (Dan), Volesky, Brown (Arnold), Munson

Voting No:    McCracken

Excused:    Whiting

         SB 163: prohibit discrimination by health insurers against individuals who participate in certain activities.

MOTION: TO TABLE SB 163

Moved by:    Sutton (Dan)
Second by:    Brown (Arnold)
Action:    Prevailed by roll call vote.(5-1-1-0)

Voting Yes:    McCracken, Sutton (Dan), Volesky, Brown (Arnold), Munson

Voting No:    Bogue

Excused:    Whiting

         SB 136: allow state chartered banks to expand their investment options to include certain annuities.

Presented By:    Senator Craddock, Prime Sponsor

MOTION:     AMEND SB 136

On page 2, line 2 of the printed bill, delete " investment portfolio " and insert "assets".

On page 2 , line 2, delete everything after " insurer. " .

On page 2 , delete lines 3 and 4 , and insert "The insurer shall be rated in the top three".

On page 2 , line 5, after " Service. " insert "The annuity shall be fully liquid and may not be subject to any surrender charges or any other restrictions on redemptions.".

Moved by:    Sutton (Dan)
Second by:    McCracken
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 136 AS AMENDED

Moved by:    Volesky
Second by:    Brown (Arnold)
Action:    Prevailed by roll call vote.(6-0-1-0)

Voting Yes:    Bogue, McCracken, Sutton (Dan), Volesky, Brown (Arnold), Munson

Excused:    Whiting

MOTION:     PLACE SB 136 ON CONSENT CALENDAR

Moved by:    Volesky
Second by:    Brown (Arnold)
Action:    Prevailed by voice vote.

         SB 81: limit the Department of Labor's authority to recommend settlements in labor disputes.

The Chair deferred SB 81 until Tuesday, Feb 5.

SB 157: revise certain provisions concerning the licenses for alcoholic beverages.

The Chair deferred SB 157 until Tuesday Feb 5.

SB 172: revise the effective date of certain provisions related to insurance taxes.

The Chair deferred SB 172 until Tuesday, Feb 5.

         SB 103: require contractors to have surety bonds or to notify the person or entity that there is not a surety bond.

Presented By:    Senator Olson, Prime Sponsor
Proponents:    Dick Frederick, Self, Mitchell, SD
Opponents:    Tim Dougherty, Home Builders SD
        Jerry Vogeler, SD Mfg Assn
        Deb Phllips, Self, Whitewood, SD
        Robert Litz, Home Builders SD, Sioux Falls, SD

MOTION:     AMEND SB 103

On page 1, line 5 of the printed bill, before " contractor " insert "general".

On page 1 , line 5, after " contractor " insert ", subcontractor, or construction manager".

On page 1 , line 6, after " surety " insert "maintenance bonds".

On page 1 , line 7, after " surety " insert "maintenance bonds".

On page 1 , line 8, after the first "surety" insert "maintenance bond".

Moved by:    McCracken
Second by:    Brown (Arnold)
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION AMEND SB 103

On the printed bill, delete everything after the enacting clause and insert:

" Section 1. If a contract of more than ten thousand dollars is entered into for construction, alteration, or repair of any improvement for a natural person or private entity, any contractor, subcontractor, or construction manager who does not have liability insurance with limits of at least one hundred thousand dollars shall, before commencing work, disclose that fact to the person or entity using the following specific language:

(1) This contractor is not covered by liability insurance; or

(2) This firm is not covered by liability insurance.

Section 2. The disclosure required in section 1 of this Act shall be included in every written communication with the contracting natural person or private entity."

Moved by:    Bogue
Second by:    Volesky
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 103 AS AMENDED

Moved by:    Bogue
Second by:    Whiting
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 103 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Sutton (Dan)
Second by:    Brown (Arnold)
Action:    Prevailed by roll call vote.(4-3-0-0)

Voting Yes:    McCracken, Sutton (Dan), Volesky, Brown (Arnold)

Voting No:    Bogue, Whiting, Munson

         SB 120: authorize additional off-sale retail liquor licenses in certain first class municipalities.

Presented By:    Senator McCracken, Prime Sponsor
Proponents:    Jeff Fox, HyVee, Sioux Falls, SD
        Harry Christianson, Nash Finch, Rapid City, SD
        Jim Hood, SD Retailers Assn
Opponents:    Tim Dougherty, Liquor Retailers

MOTION:     DO PASS SB 120

Moved by:    McCracken
Second by:    Whiting
Action:    Prevailed by roll call vote.(5-2-0-0)

Voting Yes:    McCracken, Sutton (Dan), Volesky, Whiting, Brown (Arnold)

Voting No:    Bogue, Munson

         SB 110: revise certain provisions regarding the regulation of vehicle dealers.

         Gavel passed to Vice Chair for remainder of committee meeting

Presented By:    Senator Munson, Prime Sponsor
Proponents:    Myron Rau, SD Auto Dealers
        Mark McKie, Self, Rapid City, SD
        Bob Lier, Car Dealer, Canton, SD
        Dick Gregerson, SD Auto Dealers
Opponents:    Dave Gerdes, General Motors (Handout A)

MOTION:     DO PASS SB 110

Moved by:    Volesky
Second by:    McCracken
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Bogue, McCracken, Sutton (Dan), Volesky, Whiting, Brown (Arnold), Munson

         SB 151: limit certain charges and provide a right to rescind with regard to certain installment loan contracts.

Presented By:    Senator Munson, Prime Sponsor
Proponents:    Larry Nowa, Sioux Falls Credit Union
        Joni Cutler, SD Advocacy For Women (Handout A)
        Karen Hatternis, Self, Sioux Falls, SD
        Representative Kay Davis, self,
        Sam Wilson, AARP
Opponents:    Dave Gerdes, Consumer Lending Alliance (Handout C)
        Brett Koenecke, CFSA
        Harry Christianson, Consumer Loan Alliance
        Rex Hagg, Direct Check Alliance Inc.
        John Brown, SD Consumer Finance Assn

MOTION:     DEFER SB 151 UNTIL TUESDAY, FEBRUARY 5

Moved by:    Munson
Second by:    Sutton (Dan)
Action:    Prevailed by voice vote.

MOTION:     ADJOURN

Moved by:    Sutton (Dan)
Second by:    Munson
Action:    Prevailed by voice vote.

Margaret Nickels

____________________________

Committee Secretary

David R. Munson, Chair

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